globinfo
freexchange
A closer
look on the chart of the US debt held by the Federal Reserve, could
allow one to derive even more interesting conclusions.
Using chartIV, the one where the US debt held by the Fed is expressed as
percentage of GDP, it would be safer to compare different time
periods.
Therefore,
for example, the US debt held by the Fed in the fourth quarter of
1971 was 5.88% of GDP, while the corresponding figure drops
continuously (with only negligible rises between) at its lowest point after 10 years, 3.79% of GDP in the
second quarter of 1981. The decline over this 10-year period is
35.5%.
From this
point until 2007 the line goes quite smooth with ups and downs. In
the first quarter of 2007, just before the burst of the big financial
crisis, the US debt held by the Fed was 5.48% of GDP. Only one year
later and in the midst of the crisis storm, in the third quarter of
2008, this figure drops dramatically to 3,21% of GDP. The decline
over just one year period is 41.4% (!).
From this
point up today, there is an unprecedented rise of the US debt held by
the FED. Specifically: In the first quarter of 2014, this figure is
skyrocketing at 15,34% of GDP, which means a rise of 377,88% in six
years!
This chart
not only shows the role of the Fed in the latest big financial crisis
but also that the Fed has taken full control of the US state through
an unprecedented debt share.
Read also:
Federal Reserve is able to
contribute significantly to the expansion of crisis since the US
government appears to be increasingly dependent on Fed's
quantitative easing policies.
|
Comments
Post a Comment